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Level 1
posted Mar 22, 2022 10:27:52 AM

What 's Next with Form3520 in TurboTax?

In Year 2021, I inherited money over US$100K from my mother who had passed away in a foreign country.  I have filed Form 3520 in January, 2022.  I kept a hard copy of that form.

 

Now, what to do when I file Year 2021 Tax Return when I use TurboTax?  Is there a chapter / item in TurboTax to show IRS that I've done Form 3520 earlier than today (3/22/22)?

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1 Best answer
Expert Alumni
Mar 22, 2022 10:46:40 AM

Once you filed the 3520 that would be the end of that portion of the process.  You inherited the money, so there would be no income tax on it.  The final issue is, What did you do with the money after you inherited it?.

 

If you deposited it in the US that is the end of the story, and you need nothing further for your taxes.  However, if you left it in a foreign country you may have to file additional paperwork.

 

Every year, under the law known as the Bank Secrecy Act, you must report certain foreign financial accounts, such as bank accounts, brokerage accounts, and mutual funds, to the Treasury Department and keep certain records of those accounts. You report the accounts by filing a Report of Foreign Bank and Financial Accounts (FBAR) on FinCEN Form 114.

 

IRS Report of Foreign Bank and Financial Accounts (FBAR)

1 Replies
Expert Alumni
Mar 22, 2022 10:46:40 AM

Once you filed the 3520 that would be the end of that portion of the process.  You inherited the money, so there would be no income tax on it.  The final issue is, What did you do with the money after you inherited it?.

 

If you deposited it in the US that is the end of the story, and you need nothing further for your taxes.  However, if you left it in a foreign country you may have to file additional paperwork.

 

Every year, under the law known as the Bank Secrecy Act, you must report certain foreign financial accounts, such as bank accounts, brokerage accounts, and mutual funds, to the Treasury Department and keep certain records of those accounts. You report the accounts by filing a Report of Foreign Bank and Financial Accounts (FBAR) on FinCEN Form 114.

 

IRS Report of Foreign Bank and Financial Accounts (FBAR)